Demand is said to be perfectly inelastic when
A) The demand curve is horizontal
B) The elasticity of demand is infinite
C) The elasticity of demand is zero
D) Consumers are highly responsive to change in the price of a good

Question

Quizplus · Accepted Answer

When the elasticity of demand is zero, it means that the quantity demanded of a good or service does not change with a change in its price. This indicates that the demand is perfectly inelastic. This can happen in the case of essential goods like medicines or specific products with no substitutes.

Demand Is Said to Be Perfectly Inelastic When